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Buy insurance cos on correction, like pharma: Dimensions

Ajay Srivastava of Dimensions Consulting is gung-ho on pharma sector and recommends not selling this space ever. He is confident that pharma is a multi-year story and investors can still make money over the next two-three years

Hailing the Modi government’s efforts of getting the Insurance Bill passed in the Rajya Sabha, Ajay Srivastava, CEO, Dimensions Consulting said the passage of bill is a big positive for the Indian economy.

According to him, Insurance Bill passage paves way for other reforms and also gives greater access to foreign capital. He added that foreign flows into the insurance will be positive not just for the sector but also for the entire market.

Srivastava recommends buying insurance players with a longer-term view. “One should enter the insurance segment with a three-five year perspective and buy on dips,” he added.

In an interview to CNBC-TV18, Srivastava said the state-run Life Insurance Corporation is doomed to suffer just like other government entities BSNL and MTNL . He believes the kind of investment LIC is making in terms of committing funds to Indian Railways may eventually push it into losses.

On pharma sector, he recommends to hold the stocks for at least 3 years. He is confident that pharma is a multi-year story and investors can still make money over the next two-three years despite the stock prices being overvalued.

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